Exchange Rate Calculator

Over the past several months, the exchange rate between the Indian Rupee (INR) and the Swedish Krona (SEK) has exhibited notable fluctuations, reflecting the dynamic interplay of economic factors influencing both currencies. This report provides an analysis of the INR/SEK exchange rate trends from September 2024 through March 2025, highlighting key movements and potential underlying causes.

Exchange Rate Trends: September 2024 to March 2025

Between September 2024 and March 2025, the INR/SEK exchange rate experienced a general downward trend, indicating a depreciation of the Indian Rupee relative to the Swedish Krona. In September 2024, the exchange rate was approximately 1 INR to 0.1211 SEK. By March 2025, it had declined to around 1 INR to 0.1167 SEK.

Key Observations:

• September 2024: The exchange rate stood at 1 INR = 0.1211 SEK on September 30, 2024.

• October 2024: The rate fluctuated, reaching 1 INR = 0.1254 SEK on October 17, 2024.

• November 2024: The exchange rate peaked at 1 INR = 0.13108 SEK on November 25, 2024, marking the highest point in the observed period.

• December 2024: The rate began to decline, averaging around 1 INR = 0.128 SEK.

• January 2025: The exchange rate continued its downward trend, with an average of 1 INR = 0.1285 SEK.

• February 2025: The rate further decreased, averaging 1 INR = 0.1239 SEK.

• March 2025: The exchange rate reached its lowest point in the observed period, with 1 INR = 0.1167 SEK on March 6, 2025.

Factors Influencing the Exchange Rate Movements

Several factors may have contributed to the observed fluctuations in the INR/SEK exchange rate:

1. Economic Performance and Monetary Policies:

• India: Economic indicators such as GDP growth, inflation rates, and fiscal policies can significantly impact the value of the Rupee. For instance, if India experienced higher inflation rates compared to Sweden, the purchasing power of the Rupee would decrease, leading to depreciation against the Krona.

• Sweden: Similarly, Sweden's economic performance, including its monetary policy decisions by the Riksbank (Sweden's central bank), would influence the Krona's strength. An increase in interest rates by the Riksbank could attract foreign investment, strengthening the Krona against the Rupee.

1. Trade Balances:

The trade balance between India and Sweden affects currency demand. A trade deficit in India (importing more than exporting) would increase demand for foreign currencies, including the Krona, leading to Rupee depreciation.

1. Global Economic Events:

Global events, such as changes in commodity prices, geopolitical tensions, or economic crises, can lead to shifts in investor sentiment, affecting currency values. For example, a global economic slowdown might prompt investors to seek safe-haven currencies, potentially strengthening the Krona relative to the Rupee.

1. Market Sentiment and Speculation:

Investor perceptions and speculative activities can cause short-term fluctuations in exchange rates. News related to political stability, economic reforms, or other country-specific events can influence market sentiment, impacting the INR/SEK rate.

Implications and Considerations

The depreciation of the Indian Rupee against the Swedish Krona over the observed period has several implications:

• For Importers and Exporters:

  • Indian Importers: A weaker Rupee makes imports from Sweden more expensive, potentially increasing costs for Indian businesses relying on Swedish goods.
  • Indian Exporters: Conversely, Indian exporters may find their goods more competitively priced in the Swedish market, potentially boosting export volumes.

• For Investors:

Currency fluctuations can impact returns on investments denominated in foreign currencies. Investors should consider exchange rate trends when making investment decisions involving INR and SEK.

• For Travelers:

Individuals traveling between India and Sweden will find that a weaker Rupee increases the cost of expenses in Sweden, affecting travel budgets.

Conclusion

The INR/SEK exchange rate from September 2024 to March 2025 demonstrates a clear trend of Rupee depreciation against the Krona. This movement is likely influenced by a combination of economic performance, monetary policies, trade balances, global economic events, and market sentiment. Stakeholders, including businesses, investors, and travelers, should remain vigilant to these factors and consider their potential impacts when engaging in activities involving these currencies.